The former head of online security at Lloyds Banking Group has been jailed for
five years after admitting stealing more than £2.4 million from the taxpayer
funded company.

Former Lloyds bank security chief Jessica Harper Photo: PA

By Martin Evans, Crime Correspondent

12:07PM BST 21 Sep 2012

Jessica Harper is believed to have invested in properties in France as well as spending a large amount of money landscaping the garden at her home in Croydon.

But the 50-year-old claims to have lavished the majority of her “ill-gotten gains” on family and friends, allowing them to buy holiday homes and rental properties.

In what was described as an “unsophisticated” deception, Harper admitted submitting 93 false invoices paying herself £2,463,740.88 during a three year period between December 2007 and December 2011.

The fraud took place during a period when the taxpayer was forced to bail out Lloyds Bank Group to the tune of £20 billion and Harper claimed the pressure of the financial crisis contributed to her actions.

But Southwark Crown Court heard that following her arrest, Harper, who earned in excess of £60,000 a year, told police she had taken the money because she had been working 60 hours a week and felt she “probably deserved it”.

Related Articles

Sentencing her Judge Deborah Taylor, told her: “You were a senior employee in a bank, in a position with a high degree of trust at a time when Lloyds was substantially supported by the public - that is tax-payers’ money - following the financial difficulties sustained by the bank in the financial crisis.

“You disregarded your duties out of a sense of entitlement to take other people’s money for your own benefit and the benefit of your family.”

The court heard how Harper gave large amounts of money to her three brothers, which they invested in property.

They were all interviewed under caution but it later emerged that she had deceived them into thinking her generosity was being funded by a vast salary.

Antony Swift, prosecuting, said: “Their understanding was that their sister was very well paid. They believed she could afford to be financially generous towards them."

He added: "They all expressed shock, upset and surprise at their sister’s behaviour.”

The court was told that since her arrest Harper has sold her home, her car, her shares and has cashed in her pension in an effort to repay the money she stole.

In addition properties purchased by her family have also been placed on the market and the proceeds will be paid back to Lloyds.

But Mr Swift said that while £709,000 of the £2.4 million had been paid back, it was unlikely all of the money would be recovered.

He said: “Jessica Harper has said that if her brothers’ properties sell for the full market value then in total she will be able to repay approximately £1.7 million.

“The prosecution thinks this is a very optimistic estimate and it still falls short of the loss caused of £2.4 million by a significant amount.”

Mr Swift said the prosecution was also still investigating whether Harper had assets hidden in France, including in a holiday home and a bank account.

It is believed she purchased a property for £25,000 and also spent money renovating a property belonging to her mother.

Carol Hawley, defending told the court that her client had made every effort to repay the money and insisted that she was not hiding any assets.

Detective Chief Inspector Robin Cross, of the Metropolitan Police’s Fraud Squad, said: "This case is an example of a serious abuse of position by a senior bank employee who should have been protecting the bank and its customers against fraud.

“Jessica Harper stole nearly £2.5million from the bank over a number of years and while she has repaid some of the money we are actively seeking further assets for confiscation.

“This should serve as a warning to any bank employee that the Met will thoroughly investigate such frauds, which rarely remain undiscovered. Jessica Harper has destroyed her own reputation and the sentence reflects the seriousness of the offence.”

Harper was sentenced to five years for fraud and four years for money laundering. The sentences are to be served concurrently.